Judge orders trucking company to end repeated violations of employment tax laws

Owner allegedly owed more than $2.7M in taxes

Posted January 28, 2016

A federal court in Rock Hill, South Carolina, ordered the owner of a trucking company, which he operated under two separate names, to stop violating their employment tax reporting, deposit, and payment obligations.

The Judgment and Permanent Injunction by Consent requires the owner and the business to timely file all employment tax returns, to make all required deposits of employment and unemployment taxes, and to certify to the Internal Revenue Service (IRS) that they have made these deposits. The injunction also prohibits the defendants from making other disbursements if the business’s current employment taxes are not paid. The injunction also requires the owner to notify the IRS of any new company he owns, manages, or works for over the next five years.

The government’s complaint alleged that the owner operated the trucking company since at least 2008 and was routinely late in filing its employment tax returns and paying its employment taxes, when he did so at all. According to the complaint, the owner also failed to pay over the taxes withheld from his employees’ paychecks.

By the time the complaint was filed in June 2015, the businesses together owed more than $2.7 million in federal employment and unemployment taxes for various periods from 2009 through 2014, the complaint stated. The complaint alleged that this pyramiding of taxes had continued in spite of repeated efforts by the IRS to collect the tax and to help the owner and the business cure the violations.


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